Generation Y And Z Prefer Credit Cards To Other Payment Options

When you go to pay for something, do you automatically go for the cash in your wallet, or do you pull out your credit card? The answer may have to do with your age – at least according to a recent survey by financial tech firm Vyze.

The Vyze survey looked at Generations Y and Z. Those are the folks that make up the Millennial generation, with Generation Y defined as those ages 25 – 34, and Generation Z encompassing the 18 – 24 set. Vyze wanted to know how generational differences affect customers’ payment preferences, and whether younger people are more comfortable with cash, credit, installment plans, or other types of payment arrangements.

They found that 80% of the Millennial generation as a whole vastly prefer using a credit card to make any type of purchase, and not only that, but that they specifically would choose a credit card that charged a 0% interest rate for six months over a fixed monthly payment plan that also did not charge interest.

Even better than a credit card with zero interest is one that offers a cash back bonus; 53% of Generation Y and 55% of Generation Z would use a credit card that offered 5% cash back rather than paying with cash.

Younger Millennials struggle the most with credit

The idea of carrying a credit card balance doesn’t seem to bother younger folks; nearly 7 in 10 said they were “somewhat” comfortable carrying their balance over from month to month, and almost 25% said they were “very” comfortable doing so.

There were some areas where the youngest Millennials could use help when it comes to credit; Generation Z is the least likely to know their credit score (only 42% know their score, as opposed to 73% of Generation Y). And 47% of Generation Z said they don’t have the information they need in order to make a decision about how to apply for credit – online or in a store – versus 26% of Generation Y who were unsure about the best way to apply for new credit.

This lack of knowledge seemed to affect Generation Z’s feelings about credit; while four out of 10 said credit cards were “helpful,” the other six said they found credit “complicated” or “misleading.”

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